Yes, there are several government incentives that can significantly reduce the upfront cost of energy storage systems:
Federal Incentives
- Investment Tax Credit (ITC): The Inflation Reduction Act extends the ITC to standalone battery storage, offering a 30% tax credit for residential and commercial installations. This was previously only applicable when paired with solar systems.
- Clean Electricity Investment Credit (CEIC): Starting in 2025, this credit provides up to 50% of the project cost for commercial battery storage installations, with bonuses for using US-sourced materials or serving energy communities.
State-Level Incentives
- California: The Self-Generation Incentive Program (SGIP) offers a rebate for energy storage installations, with higher incentives in high fire threat districts and for low-income households. The rebate can provide substantial savings, such as $200 per kWh for typical residential customers.
- Connecticut: The Energy Storage Solutions program offers residential customers up to $16,000 and businesses a 50% upfront incentive for installations that help reduce grid stress.
- Massachusetts: The Mass Save Connected Solutions program provides financial incentives and zero-interest financing for battery installations to enhance grid stability.
- New York: Long Island residents can receive a $250 per kW rebate for battery storage, though funds are limited as of 2025.
Local and Utility Incentives
- Many utility companies offer rebates for installing grid-connected energy storage systems, which can range from a few hundred to several thousand dollars.
- Performance-based incentives, such as demand response programs, compensate businesses for their system’s contribution to grid stability.
These incentives can significantly reduce the upfront costs of energy storage systems, making them more financially accessible for both residential and commercial consumers.
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